Free merchant accounts simply do not exist (unless your a non-profit or charity type organization). Don’t be dismayed though. While some merchant account providers do make claims of a free merchant account, they are just trying to lure you in. There will always be an upfront cost when you purchase a merchant account for your business. Check out the merchant account warning guide. However, the upfront setup/purchase prices for Internet-based businesses has dropped quite a bit. Upfront costs will range from $0 and up, but there will almost always be a monthly fee (sometimes as low as $5 – but rarely). It is understandable that a new business start-up can’t afford to lay out too much money on a merchant account, it’s important you purchase from the right company. Merchant Warehouse. offers some of the lowest rates for a merchant account. You may want tosearch here on MerchantSeek for a provider, also.
Just be aware that any company who claims to offer a free merchant account is making up their loss in another rate or fee. It’s also a good idea to work with a merchant account provider who will not charge you a cancellation fee should you decide to move providers later on. This will save you headaches down the road.
Check out the merchant account rates/fees section for details on pricing and a description of what the fee is charged for.